What is Probate?

When someone has died, the Executors will usually need to apply for a Grant of Probate.

Probate is the process of administering a deceased estate, including ascertaining assets and liabilities of the estate, paying debts or liabilities, and distributing the estate under the terms of a will.

The grant itself is the provision of a legal document that confirms the Executor has the authority to deal with the deceased’s assets.

If there is no will, or the will is invalid, the process is similar but is referred to as Letters of Administration.

Once Probate has been granted, the Executor(s) can start to deal with the personal assets of the deceased in accordance with their Will.

If the deceased died without a Will, the current intestacy laws will determine who will benefit and who can administer the Estate.

Bank accounts

Banks will often release small account balances without the need for formal probate, limits vary from bank to bank, but the amounts they are willing to release are usually within the range of £5,000 to £30,000.  

For sums in excess of this the banks will insist upon probate before releasing any funds.

In addition, probate will also be needed before shares or property can be formally transferred out of the deceased’s estate or sold. 

Jointly held assets

Any investments or property held jointly as “joint tenants” transfer automatically to the surviving owners and a grant of probate would not be required to formally transfer such assets.  

Property held jointly as “tenants in common” does not transfer automatically to the remaining owners and will instead pass in accordance with the deceased’s will.

Probate application

In order to apply for Probate, the Executor(s) need to work out the value of the deceased’s estate and calculate any inheritance tax due.

This will involve tracking down and valuing all of the assets of the deceased. This will include their property, investments and all of their physical possessions.  

Any outstanding debts will also need to be identified before the overall value of the estate can be determined.

Inheritance tax account

Once the estate is known and the tax liability has been calculated, the Executors need to complete and file an Inheritance Tax (IHT) account to HMRC.  

This needs to be submitted, and any tax liability paid, before probate can be granted.

If land and property is involved then payment of the IHT due in instalments can usually be agreed with the Capital Taxes Office.

Grant of Probate

The Executor(s) would usually issue copies of the Grant of Probate to all relevant parties, (for example banks, stockbrokers, IFAs, etc) which would allow them full access to the underlying assets.

The Executor(s) can then settle all outstanding debts of the estate, pay any administration expenses, account to HMRC for any further Inheritance Tax, Income Tax or Capital Gains Tax due to or from the estate.

Estate accounts

Estate accounts may need to be prepared to document all payments into and out of the estate and to determine the balance left for distribution to the beneficiaries.

A Section 27 (Trustee Act 1925) notice is also often placed in the Gazette and a local newspaper to inform any potential creditors that the Estate is soon going to be distributed.

Providing there are no challenges to the estate, or other factors preventing distribution, the final phase would be to transfer assets to the beneficiaries and distribute the balance of the estate funds.

Where can I find more information about Bishop Fleming's probate service?

You can find more information on our Probate Services page.